Can I revoke my ACH payment? NO! cashnetusa
Date: Wed, 07/08/2009 - 10:57
ACCORDING TO CASHNET USA:
No. The ACH Authorization can only be revoked AFTER we have received payment in full of the amount owed. Because our advances are single payment advances (that is, we advance a sum of money that is to be repaid in a lump sum), we are permitted to require ACH repayment in accordance with the federal Electronic Funds Transfer Act ("EFTA").
Under The EFTA, a lender cannot require a consumer to repay a loan by means of preauthorized electronic funds transfers as a condition to approving the consumer’s loan. The term “preauthorized electronic funds transfer†is narrowly defined by the EFTA to mean “an electronic funds transfer authorized to recur at substantially regular intervals.†As explained by the Federal Reserve Staff in its official commentary to the EFTA, “Creditors may not require repayment of loans by electronic means on a preauthorized, recurring basis.†12 C.F.R. 205, Supplement I – Official Staff Commentary, at 10(e) (1) (Loan Payments). As a one-time payment, the repayment of a CashNetUSA advance is not encompassed by the EFTA’s definition of “preauthorized electronic funds transfer,†and is therefore permitted under the EFTA.
It was my understanding that under federal law, I have the right to revoke any ACH transactions from processing through my account?
yes jordan, you have the right under federal law to revoke autho
yes jordan, you have the right under federal law to revoke authorization of ach transactions at any time us wish. when signing the contract with the pdl you agreed at that time to ach transactions but it is your right to change your might in which method you wish to repay the loan.
They are incorrect. Tell them you have shown a copy of the revoc
They are incorrect. Tell them you have shown a copy of the revocation to your financial institution and their (CashNetUSA) request will be denied should they try to debit your account.
Thanks so much Shazzers! Thats exactly what I thought. I have
Thanks so much Shazzers! Thats exactly what I thought. I have been fighting with them on and off all day long. They told me that if I revoke the ach transaction agreement OR close my account they will file charges with the prosecutor and have me arrested.
They also informed me that if the ach transaction does not go through it is the same as passing a bad check and again I will be prosecuted.
So now Im scared they really will send me to jail!!!
Jordan what state do you live in? CASHNETUSA: Official Staff
Jordan what state do you live in?
CASHNETUSA: Official Staff Commentary, at 10(e) (1) (Loan Payments). As a one-time payment, the repayment of a CashNetUSA advance is not encompassed by the EFTA???s definition of ???preauthorized electronic funds transfer,??? and is therefore permitted under the EFTA.
It is not a "one-time" payment if an extension has been requested and a roll over has occured.
Under federal law you have the right to revoke any and all ach transactions from your account. Then call the PDLs and try to make payments arrangements
Is it considered passing a bad check if the ach transaction is d
Is it considered passing a bad check if the ach transaction is denied? I also tried requesting a EPP and they told me that was not available either!
NO , it is not considered passing a bad check. Regulation E
NO , it is not considered passing a bad check.
Regulation E
Sec. 205.10 Preauthorized
(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.
Mobile0311 is correct. When signing the contract you agreed at
Mobile0311 is correct. When signing the contract you agreed at that time to authorize ach transactions. It is your right under federal law to change you mind for any reason and revoke the ach transaction agreement.
When you call them to notify them you are revoking the ach transaction, let them know you are aware of federal law. They dont want to violate a federal law!
What is going to happen to me now
well cashnetusa called this morning with threats of charging me with bank fraud, and passing bad checks . They said I signed a legal binding contract when taking out the online loan. The ach transaction agreement was part of that contract.
They also called all my references and told them to be prepared to bail me out of jail.
I live in Missouri and they said under Missouri law they have all the rights to send me straight to jail.
I asked if I could set up an EPP, and send payments via money order and Sonja with Cashnetusa said "no you may not, we do not offer EPP!" "If all of your extensions are used up, you need to make payment in full!" "And we do not accept money orders as form of payment, due to the processing time and the easy ability to counterfeit them."
Sonja said that the full amount due to cashnetusa of $564.50 would be processed via ach transaction. I dont have that much money and am not going to have in the near future.
Their threats are illegal...I would file complaints with the AG
Their threats are illegal...I would file complaints with the AG office in both states. By calling your references and telling them to "be prepared to bail you out of jail" is beyond reproach!!
File those complaints!
Send CashNet (if you haven't already) notification of ACH Revocation. If they try to hit your account, dispute it with the bank with a copy of that letter that you did not authorize it. See if the bank will block them from debiting your account.
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called my bank and they did put a "hard block" on my account. T
called my bank and they did put a "hard block" on my account. The manager assured me that no more ach transactions will be processed through my account.
I filed a complaint with the AG.
Cashnetusa has called me 2 times this morning. 1st call was demanding that I pay them in full (using ach method). And the 2nd call telling me what they were going to do to me (file criminal charges, have me arrested, etc.).
Cashnetusa will not take revoke as an answer! They called this
Cashnetusa will not take revoke as an answer! They called this morning at 9:15 a.m. and told me they are contacting the prosecutor of my county to file charges.
They called me back at 11:22 a.m. stating that they made contact with the prosecutor and as soon as everything was filed I would be arrested for passing a bad check. I asked the guy on the phone the name of the prosecutor and he couldnt even tell me his name.